Core Viewpoint - Compal anticipates that rising memory prices will significantly impact the notebook and personal computer industry, with expectations of a low-single-digit percentage decline in global shipments in 2026 [1][2]. Group 1: Industry Impact - The CEO of Compal, Anthony Peter Bonadero, stated that the entire market will be affected by the memory price surge, although Compal's own notebook and PC business may remain flat or see slight growth due to its customer mix [2]. - The top three memory chip producers, Samsung Electronics, SK Hynix, and Micron, are struggling to meet demand, particularly due to the increase in artificial intelligence data center deployments, which has tightened memory chip supply [3]. Group 2: Memory Chip Cost Dynamics - Memory chips typically account for 15% to 18% of a PC's material costs, but this share is expected to rise to 35% to 40% due to the current market conditions [4]. - Compal expects pricing volatility in the memory space to continue, with major manufacturers prioritizing high-bandwidth memory for AI servers [3]. Group 3: Company Strategy and Expansion - Compal is restructuring to enhance its AI-related and AI server business, with a $500 million investment approved for expanding operations in the U.S. [4]. - A factory in Texas is expected to be completed by the second quarter of this year, which will begin producing AI servers later in the year [4]. - The company is also diversifying its supply chain geographically, expanding capacity in the U.S., Taiwan, and Vietnam to meet customer demands [5].